Question : The aggregate demand and aggregate supply model is used in:
Option 1: Microeconomics
Option 2: Macroeconomics
Option 3: Econometrics
Option 4: Industrial organization
Correct Answer: Macroeconomics
Solution : The correct answer is (b) Macroeconomics.
The aggregate demand and aggregate supply (AD-AS) model is a fundamental framework in macroeconomics. It is used to analyze and understand the overall behavior of an economy. The model examines the relationship between the aggregate demand for goods and services and the aggregate supply of output in an economy. It helps to explain how changes in factors such as consumption, investment, government spending, and net exports affect the overall level of output, employment, and prices in the economy. The AD-AS model is used to analyze business cycles, inflation, and economic growth at the macroeconomic level.
Question : The concept of demand and supply is a key topic in:
Option 1: Macroeconomics
Option 2: Microeconomics
Option 3: Both microeconomics and macroeconomics
Option 4: Neither microeconomics nor macroeconomics
Question : The other name of macroeconomics is ___________.
Option 1: Aggregate Demand Theory
Option 2: Income and Employement Theory
Option 3: Aggregate Supply Theory
Option 4: All of the above
Question : The main tools of macroeconomics are ___________ and _________.
Option 1: Aggregate demand and aggregate supply
Option 2: Determination of income and employment
Option 3: Both 1 and 2
Option 4: None of the above
Question : Which of the following is related to Microeconomics?
Option 1: Inflation
Option 2: Aggregate Demand
Option 3: Income from Post office
Option 4: Aggregate Supply
Question : Demand-pull inflation occurs when:
Option 1: Aggregate demand exceeds aggregate supply
Option 2: Aggregate supply exceeds aggregate demand
Option 3: There is a decrease in aggregate demand
Option 4: There is a decrease in the aggregate supply
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